Ivan Delgado
Independent Analyst
The AUD/USD was capped yesterday by very solid and regular offers from 2 big hedge funds. I’m still not sure if this is part of a straight AUD/USD play or perhaps it’s part of a cross play (which looks to be the more likely explanation after the overnight moves). Asset managers are still expected to buy any deep AUD/USD dips but sentiment is slowly turning bearish. The market has now all but discounted a rate cut next week.
EUR/USD broke above the well-protected 1.3500 level and has consolidated those gains. The weekly chart has broken above all the big MAs and gains towards 1.4000 now look feasible (see chart).
USD/CHF moved sharply lower in what looks like stop-loss selling. The market may well have gotten itself short of CHF at the wrong levels and hence the adjustment. The short-term charts suggest that we may see an extended .9080/.9380 range (see chart) and I still like the bullish bias here as asset managers exit long-term Swiss strategies.
USD/JPY broke above another milestone at .9100 and consolidated those gains as the Yen continued to lose ground on the crosses. There is little in the way of major resistance now until a major high at 94.90.
EUR/JPY is consolidating above major technical resistance at 123.10/20 and this is yet another very bullish sign. The next technical resistance of note is a weekly high at 128.00.
The GBP was relatively quiet, making modest gains against the USD and losing slightly on the EUR. There is decent technical resistance on the day at 1.5865 (see chart).
Good luck today.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.